Bison Blockchain Asks Court to Freeze Funds from MineOne and Terra Crypto Properties Sale

News | May 30, 2024 By:

On Wednesday, May 15, 2024, bitcoin mining company Bison Blockchain filed an emergency motion in the United States District Court for the District of Wyoming.

Bison Blockchain has accused other Bitcoin mining firms MineOne Wyoming Data Center and Terra Crypto of breach of contract. Bison Blockchain claims the companies owe over $38 million from two agreements related to operating Bitcoin mining sites.

The emergency motion seeks a protective order over the sale of the Bitcoin mining properties owned by MineOne and Terra Crypto. Recently, the companies entered an agreement to sell their North Range and Campstool sites to CleanSpark for between $18.7-32.5 million.

However, Bison Blockchain is worried that once MineOne and Terra Crypto receive the sale funds, they will remove the money from the court’s jurisdiction. Given a recent presidential order requiring the sellers to leave the Wyoming properties, Bison Blockchain argues MineOne and Terra Crypto have no other assets and would likely abscond with the funds.

In its motion, Bison Blockchain provided documents showing MineOne director Jiaming Li had misrepresented in the sale agreement that no litigation was pending over the properties. The year-long lawsuit between Bison Blockchain and MineOne would contradict this claim.

To prevent alleged irreparable harm, Bison Blockchain asked the court for a prejudgment writ of attachment and garnishment over the sale proceeds. It wants the funds held by the court until the breach claims can be resolved through settlement or trial.

The emergency nature of the motion stems from a looming closing date in the MineOne-CleanSpark deal. Over $5.5 million has already been deposited in escrow, with more funds transferring upon certain conditions.

Bison Blockchain stressed it’s not seeking to stop the sale but to protect the proceeds given concerns over MineOne and Terra Crypto’s ability to satisfy any ultimate judgment. With the presidential order forcing divestment of the bitcoin mining assets, the sale money represents the companies’ only remaining funds within the court’s jurisdiction.

A hearing date has not yet been set for the emergency motion. The court will have to decide quickly whether prejudgment remedies are warranted given the situation’s urgent timeline and risk of lost damages relief for Bison Blockchain.

Please contact BlockTribune for access to a copy of this filing.